How deregulation of the trucking industry in 1980 opened up opportunities for independent contractors

Ross A Marchand from Economics 21, a non-profit organization that conducts economic research, compared the annual wages of a truck driver in 1976 to the annual wages received by drivers in 2016 in order to see how deregulation affected wages. In 1976, annual wages were reported at $78,000, according to Bureau of Labor Statistics, while in 2016, annual wages were reported at $41,000. The two figures differ by a significant amount. Deregulation is the concept of eliminating regulations that are perceived to hinder the growth of an industry. In 1980, the Motor Carrier Act was passed, which effectively initiated the deregulation of the trucking industry. The Act essentially prohibits rate bureaus from interfering with how carriers publish and implement their rates. One of the advantages that deregulation offered was to open up oppportunities for independent contractors. Independent contractors do not work as the employees of any company and have the advantage of getting a higher pay than the drivers employed by a company. However, independent contractors have to face their own share of risks.
Truckers have the option of choosing the source of their income. Some drivers prefer the security of salaried jobs despite the pay while some others are willing to take the risks of a contractual job if the income is worth the risks.